Petrol prices soar now as servos accused of gouging

Petrol price gouging continues amid Middle East conflict, social media drives big ticket spending, and the simple hack home owners are using to slash thousands off mortgage interest costs. Here are five things you may have missed this week.

Why petrol prices are jumping so fast

Donald Trump's Operation Epic Fury looks like being an epic drain on household budgets.

Iran has vowed to gun down ships passing through the Strait of Hormuz, the main maritime highway for 20% of the world's oil supply.

That sent the price of crude oil skyrocketing from $US66 per barrel on February 27 to $US84 on March 5.

Aussie motorists are already feeling the pinch.

Fuel Check says that in NSW, Unleaded 91 is now selling for 200.1 cents per litre (cpl), up from 177.5 cpl last Friday, though some outlets are charging over 227 cpl.

Motoring body, the Royal Automobile Club of Queensland (RACQ), has called out major fuel retailers for pumping up prices less than three days after conflict broke out.

RACQ's principal economic and affordability specialist, Dr Ian Jeffreys, says, "Yes, we've seen an increase in the global oil price, but that usually takes around two weeks to flow through to bowsers here in Australia, not two days."

The RACQ is referring price gougers to the Australian Competition and Consumer Commission (ACCC) for investigation.

Dr Jeffreys warns, "Now, more than ever, it's important to fight back as a consumer by using price monitoring services to find the cheapest fuel near you and reward those stations with your business."

How social media is influencing big ticket spending

Research by Finder shows social media is influencing some of our biggest financial decisions.

It turns out one in five Australians, around 4.4 million people, have purchased big ticket items through platforms such as TikTok, Instagram or Facebook Marketplace.

The most common major purchases are a car (10%), a holiday, artwork or expensive jewellery (5% respectively).

Amazingly, 3% of Aussies say they have bought a house through social media.

Finder's Rebecca Pike, says social media has become a powerful sales engine.

"For a growing number of Aussies, social media isn't just entertainment - it's influencing some of the biggest financial moves of their lives.

"When you're repeatedly shown a product that aligns with your aspirations, it can fast-track that purchase."

Big purchases deserve big consideration.

A 30-second video or a glowing comment section shouldn't replace your own research.

There's another issue at stake too.

Pike notes, "Social media can be a legitimate marketplace, but it can also be a hunting ground for scammers.

"If you're spending thousands - or hundreds of thousands - make sure you verify the seller, check contracts carefully and avoid paying large sums without proper protections in place."

How offset accounts help slash mortgage interest

Demand for offset accounts is surging as young homeowners look for ways to beat rising interest rates.

An offset account is an at-call account linked to a home loan.

Instead of being paid interest on the offset account, the balance is deducted from (or 'offset' against) the value of a home loan when loan interest is calculated.

For example, if you have a $500,000 mortgage and $10,000 in an offset account, the loan interest is based on a balance of $490,000 ($500,000 less $10,000).

Offset accounts aren't new. However, NAB data shows nearly three-quarters of its home loan customers now use an offset account to cut down the interest they pay.

NAB says that on a $500,000 loan at 5.42% over 30 years, keeping money in an offset account could cut around $74,000 off the total interest paid.

While homeowners aged 40-60 remain the biggest users of offset accounts, the uptake among under-35s has nearly doubled (up 98%) compared to last year.

NAB home lending executive, Denton Pugh, says, "When rates move around, it's completely normal to feel unsure about what it means for your mortgage.

"That's why tools like offset accounts matter; they help without needing big lifestyle changes."

Around half of NAB customers with offset accounts have up to $20,000 set aside, and many say it not only reduces their interest costs but also helps them feel more prepared for the unexpected.

New Vanguard funds give Aussies access to the US market

Conflict in the Middle East has seen sharemarkets take a dip this week, but it's hard to argue that the US stock market has dished up solid returns to investors.

The S&P 500, which includes tech leaders like Nvidia, Apple and Amazon, and major household names like Walmart, has soared 18.9% over the last 12 months.

Annual gains over the last 10 years have averaged over 13%.

Vanguard has launched three new S&P 500 Index funds, giving Aussie investors a chance to access the world's most influential equity market.

The Vanguard S&P 500 US Shares Index ETF (ASX: V500) is an unhedged exchange traded fund (ETF).

The Vanguard S&P 500 US Shares Index (Hedged) ETF (V5AH) is a currency-hedged ETF that reduces the impact of currency movements.

The Vanguard S&P 500 US Shares Index Fund is for investors who prefer an unlisted fund.

Duncan Burns, Asia-Pacific head of investment management for Vanguard Capital Markets, says, "These new Australian-based S&P 500 funds offer investors a straightforward, low-cost entry point to the world's largest economy."

How the 5% deposit scheme cuts years off saving for a home

Saving for a first home is becoming seriously challenging.

The latest numbers from Cotality show home values rose 9.9% nationally over the last year.

KPMG estimates we could see house prices jump another 7.7% this year.

First home buyers however, are facing far bigger price hikes.

According to Domain, the price of entry level homes has jumped 20% in the past 12 months.

Domain's chief of research and economics, Dr Nicola Powell, says, "At those rates, no one stands a chance of keeping up."

There may be a solution.

Domain found that across almost every state capital (Darwin being the exception), it can take at least five years to save a 20% deposit - a timeframe that jumps to 7 years and 7 months in Sydney.

These times can be slashed by using the 5% Deposit Scheme.

The scheme allows first home buyers to buy with 5% deposit (2% for single parents), without the added cost of lenders mortgage insurance.

For entry-priced houses, Domain says the scheme can allow buyers to enter the market anywhere from 3 years earlier in Darwin, through to 5 years and 7 months sooner in Sydney.

While it can offer a way to beat rising home prices, the downside of the 5% Deposit Scheme is that it will likely mean taking out a bigger loan. And that means bigger repayments.

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